There Will Never Be a Sound Currency System

by Egon von Greyerz

As the gold market takes a break in its journey to much higher levels, we step back and examine why gold has appreciated so dramatically in the last hundred years, and why this will continue for many years to come.

There Will Never Be a Sound Currency System | BullionBuzzMost people have no idea what money is. They believe that if they have $100, it represents real value and durability. Few realize that their currency, which they call ‘money,’ has nothing to do with real money. All paper currencies are ephemeral and return to their intrinsic value of zero. This is because reckless governments cling to power by printing or borrowing endless amounts of currency in the hope of placating the people and buying votes. Currency can never be real money. It is issued by edict and is not backed by anything but debt and liabilities.

Up for discussion: Power corrupts and money corrupts; Zimbabwe-type hyperinflation to hit most countries; gold is nature’s currency and the only money to survive; destruction of money is the historical norm; and unprecedented financial manipulation.

“One thing is certain. The current financial system will not survive because it is based on principles that are not sustainable. In such a defective system, there is no sound money.”

“What is also certain is that gold, as the only real money, will continue to reflect the mismanagement of the world economy as the currencies in the next few years finish the move to zero.”

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